New York, Jan 21, 2026, 18:53 EST — After-hours
Shares of Morgan Stanley (MS.N) climbed 0.6% on Wednesday, settling near $183.32 in after-hours trading following the 4 p.m. close.
The bounce reflects a mix of relief and repositioning. Bank stocks have been volatile amid Washington headlines, with investors scrambling to quickly assess how policy risks might hit earnings.
Wall Street closed up following President Donald Trump’s announcement that a framework deal on Greenland is in place and that the tariffs set for Feb. 1 will be scrapped, boosting risk appetite. “The real economic impact comes when we all start slapping tariffs on each other,” said Jason Pride, chief of investment strategy and research at Glenmede. (Reuters)
Morgan Stanley dropped 3.7% on Tuesday as investors digested the Trump administration’s push to enforce a 10% cap on credit card interest rates. The industry warns this cap could restrict credit access if lenders can’t price for risk. Brian Jacobsen, chief economic strategist at Annex Wealth Management, called it “an overhang” for now but said it might “clear quickly” if it shifts from an imminent executive action to a congressional debate. (Reuters)
The bank also accessed European debt markets. According to a prospectus supplement dated Jan. 20, Morgan Stanley agreed to issue a total of 5 billion euros ($5.0 billion) in euro-denominated senior notes, spread across three maturities. These include fixed-to-floating notes that begin with a fixed coupon before shifting to a benchmark-linked rate.
Peers showed a mixed picture late Wednesday. Goldman Sachs climbed roughly 1.1%, with Citigroup up about 0.9%. Meanwhile, Wells Fargo slipped 0.6%, and JPMorgan fell around 0.2%. The Financial Select Sector SPDR ETF edged higher by about 0.5%.
But the policy whiplash cuts both ways. A tougher approach on rate caps or new tariff threats might reignite the volatility that rattled financials earlier this week.
Traders are eyeing Thursday’s U.S. weekly jobless claims and other economic reports, plus earnings from Capital One, for fresh insights into the economy and consumer credit. (Reuters)
